An Increase in Current Liabilities Is a Source of Cash

question 50

True/False

An increase in current liabilities is a source of cash for the firm.

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Definitions:

Step-Down Method

A cost allocation method used in accounting to assign service department costs to production departments in a sequential manner based on benefits received.

Administration Department

A sector of a business or organization responsible for administrating policies, procedures, and administrative support.

Information Technology

The application of computers, storage systems, networking components, and other tangible devices, frameworks, and methodologies to generate, manipulate, preserve, protect, and share every type of digital data.

Prenatal Care

Medical and healthcare provided to a pregnant woman before birth to ensure the health of both mother and baby.